SMT.ANDAL ARUMUGAM vs. THE ASST. COMMISSIONER OF IN

T.C.A.No.751 of 2019 IN THE HIGH COURT OF JUDICATURE AT MADRAS DATED : 19.11.2020 CORAM THE HONOURABLE MR.JUSTICE T.S.SIVAGNANAM and THE HONOURABLE MRS.JUSTICE PUSHPA SATHYANARAYANA T.C.A.No.751 of 2019

Smt.Andal Arumugam .. Appellant Versus The Asst. Commissioner of Income Tax, Company Circle V (iv) 121, M.G. Road, Chennai - 34. .. Respondent Prayer:- Tax Case Appeal filed under Section 260-A of the Income Tax Act, 1961, against the order of the Income Tax Appellate Tribunal, Madras 'C' Bench, Chennai, dated 24.07.2012 made in C.O.No.42/Mds/2010 relating to the Assessment Year 1997-1998. For Appellant : Mr.N.Devanathan For Respondent : Mr.M.Swaminathan Senior Standing counsel and Ms.V.Pushpa

1/6 http://www.judis.nic.in T.C.A.No.751 of 2019 JUDGMENT [Judgment of the Court was made by

T.S.SIVAGNANAM

, J.]

This appeal has been filed by the assessee under Section 260 A of the Income Tax Act, 1961 ('the Act' for brevity), challenging the order dated 24.07.2012 passed by the Income Tax Appellate Tribunal, Chennai, 'C' Bench ('the Tribunal' for brevity) in C.O.No.42/Mds/2010 for the Assessment Year 1997-1998. The appellant / assessee has raised the following Substantial Questions of Law for consideration: "(i) Whether in the facts and circumstances of the case and on the evidence on record the order of the Tribunal is not perverse in law in regard to assumption of jurisdiction u/s 147 of the Income Tax Act? (ii) Whether in the facts and circumstances of the case the Tribunal was right in confirming the assumption of jurisdiction in terms of Section 147 of the Act in the absence of materials to hold the sum assessed as represents income of the appellant? (iii) Without prejudice to the above grounds, whether on the facts and circumstances of the case reopening is also bad in law in the absence of materials to hold that the appellant does not qualify for exercise of discretion in terms of Section 68 of the Income Tax Act?" 2/6 http://www.judis.nic.in T.C.A.No.751 of 2019 2. We have heard Mr.N.Devanathan, learned counsel appearing for the appellant/assessee and Mr.M.Swaminathan, learned senior standing counsel and Ms.V.Pushpa, learned counsel for the respondent/Revenue. 3. The learned counsel for the appellant / assessee, on instructions, submitted that the appellant / assessee intends to avail the benefit of Vivad Se Vishwas Scheme ('VVS Scheme' for brevity) and in this regard, the assessee is taking steps to file the application / declaration in Form No.I. 4. It may not be necessary for this Court to decide the Substantial Questions of Law framed for consideration on account of certain subsequent developments. The Government of India enacted the Direct Tax Vivad Se Vishwas Act, 2020 (Act 3 of 2020) to provide for resolution of disputed tax and for matters connected therewith or incidental thereto. The Act of the Parliament received the assent of the President on 17th March 2020 and published in the Gazette of India on 17th March 2020. 3/6 http://www.judis.nic.in T.C.A.No.751 of 2019 5. In terms of the said Act, the assessee has been given an option to put an end to the tax disputes, which may be pending at different levels either before the First Appellate Authority or before the Tribunal or before the High Court or before the Hon'ble Supreme Court of India. Under Section 2(j) “disputed tax” has been defined. In terms of Section 3, where a declarant means a person, who files a declaration under Section 4 on or before the last date files a declaration to the designated authority in accordance with the provisions of Section 4 in respect of tax arrears, then, notwithstanding anything contained in the Income Tax Act or any other law for the time being in force, the amount payable by the declarant shall be determined in terms of Section 3(a-c) thereunder. 6. The First Proviso to Section 3 states that in case, where an Appeal or Writ Petition or Special Leave Petition is filed by the Income Tax authority on any issue before the Appellate Forum, the amount payable shall be one-half of the amount in the table stipulated in Section 3 calculated on such issue, in such a manner as may be prescribed. The second proviso deals with the cases, where the matter is before the Commissioner (Appeals) or before the Dispute Resolution Panel. The third proviso deals with cases, where the issue is pending before the Income Tax Appellate Tribunal. The filing of the declaration is as per Section 4 of 4/6 http://www.judis.nic.in T.C.A.No.751 of 2019 the Act and the particulars to be furnished are also mentioned in the Sub Sections of Section 4. Section 5 of the Act deals with the time and manner of the payment and Section 6 deals with Immunity from initiation of proceedings in respect of offence and imposition of penalty in certain cases. Section 9 of the Act deals with cases, where the Act 3 of 2020 will not be applicable. 7. As observed, the assessee is given liberty to restore this appeal in the event the ultimate decision to be taken on the declaration to be filed by the assessee under Section 4 of the said Act is not in favour of the assessee. If such a prayer is made, the Registry shall entertain the prayer without insisting upon any application to be filed for condonation of delay in restoration of the appeal and on such request made by the assessee by filing a Miscellaneous Petition for Restoration, the Registry shall place such petition before the Division Bench for orders. 8. In the light of the above, We direct the appellant / assessee to file the Form No.I not later than 21.12.2020 and the competent authority shall process the application / declaration in accordance with the Act and pass appropriate orders as expeditiously as possible preferably within a period of six (6) weeks from the date on which the declaration is filed in the proper form. 5/6 http://www.judis.nic.in T.C.A.No.751 of 2019 T.S.SIVAGNANAM, J. AND PUSHPA SATHYANARAYANA, J. 9. With this direction, the Tax Case Appeal stands disposed of with the aforementioned liberty and Consequently, the Substantial Questions of Law are left open. No costs. (T.S.S.,J) (P.S.N.,J) 19.11.2020 ssd Index: Yes / No Internet: Yes / No Speaking Judgment /Non-Speaking Judgment To The Income Tax Appellate Tribunal, 'C' Bench, Chennai. T.C.A.No.751 of 2019 6/6 http://www.judis.nic.in